While the pundits are talking about how the EY split could completely change the accounting industry as we know it and inspire other firms to split once they see the truckloads of cash pulling up to EY partners’ houses, one industry vet is perched at the periphery with a stack of offer letters just waiting to snatch EY talent. PwC Chair Bob Moritz is ready — no, eager — to snatch up unhappy talent from EY, and recently told the Financial Times it would be easier to lure away senior managers than anyone in line for EY split payouts. But he’ll happily take some partners, too.
FT:
PwC is seeking to poach staff from its Big Four rival EY and capitalise on “disruption” and “uncertainty” caused by the latter’s decision to split its accounting and consultancy arms.
Bob Moritz, PwC’s global chair, told the Financial Times he was expecting to lure senior managers and even some partners as the firm pursues a big expansion in headcount.
Hiring opportunities had picked up, he said, since EY provided partners with more details of its split. “Now you’ve got some basics outlined you’re starting to see a little pick-up in that area. People now see one side or the other and [ask] ‘is that the organisation I want to be part of?’ and ‘is that the culture I want to be part of?’”
Bob Moritz has previously gone on record to suggest that EY is being shortsighted with this split, telling FT in July “the partnership has the responsibility to build for the partners yet to come.” Think about it. Do you want to be the person who just missed the boat when the million dollar split payouts come? Audit partners are expected to receive cash payouts of two to four times annual compensation or more than a million dollars each for the typical U.S. and U.K. partners, who earn on average $850,000 to $900,000 a year. Consulting partners will receive shares in the new company worth seven to nine times their annual compensation or thereabouts, paid out over five years. Imagine watching that happen and thinking how you were *this close* and yet so far.
EY says the split will offer a quicker path to partner and more opportunities for those who stick around. “They should be worried about us poaching from them,” an EY spokesperson told FT.
This war for talent could get interesting. We’ll be keeping an eye out for any big names from EY defecting to PwC in the coming months. Don’t let us down, Bob.